IOCL Reports High Crude Volatility and Rising LPG Deficits

Indian Oil Corporation Limited experienced significant crude oil price volatility during the September-end quarter, according to Director of Finance Anuj Jain. The Delhi-based refiner saw its net profit more than double to ₹21,630 crore compared to the same period last year, driven by better refining margins and temporary drops in benchmark crude prices.

During a post-results call with investors, leadership detailed that crude procurement involved varying discounts and premiums. Prices ranged from a $5 per barrel discount to a $12 premium, following an earlier quarter that saw premiums reaching up to $18 per barrel.

For the first half of the fiscal year, Russian crude accounted for approximately 55% of the company's basket. Other sources included the Middle East at 24%, Africa at 10%, Brazil at 7%, the U.S. at 2% to 5%, and Venezuela at 3% to 4%, with spot sourcing making up roughly 87% of the total basket.

Additionally, officials highlighted growing under-recoveries on liquefied petroleum gas. These shortfalls stood at ₹184 per cylinder in September, rose to ₹229 in October, and are projected to reach ₹309 in November and ₹370 in December.